Eight Former “Secret Software Truths” for Independent Dealerships

By Rob Christman , VP of Sales, AutoMatriX Dealer Software

There are over 18.5 Million Software Developers in the world today. Think about that number for a moment. 18.5 Million! It’s HUGE! If you took all these developers and created their own country, they would become the 60th largest country on the planet. Bigger in population than Chile, The Netherlands, Greece, Cuba, Portugal and Sweden!

How many of these developers work in Automotive? It’s anyone’s guess.  However, the average independent dealership uses seven to nine software vendors.  Which means that there are many thousands of software developers building hundreds of software programs in the automotive industry alone. Chances are few of these programs talk to each other and chances are, the dealer spends more time working for their software rather than their software working for them! This is especially true of the independent dealer that needs to wear so many hats and therefore uses more of these software tools in a given day than their franchise dealer counterpart.

Independent dealers are best known for being nimble. Wasting time moving between programs reduces opportunities to make deals and grow the business.

If this is you in any way, then you’ll want to read on because the Independent Dealer has challenges unique in the automotive industry as well as unique opportunities! The challenges are increased competition with Franchise dealers selling lower priced used cars, continuous shrinking front end profits, and an ever evolving and educated consumer, that increases the race to the bottom on price; further shrinking the ability to make front end money going from skinny profits to no front end gross at all. The opportunistic independent dealer can and will make major strides in 2018 and beyond. The rapidly changing automotive landscape creates the opportunity for the Independent Dealership to dominate the marketplace for 2018 and beyond. 

How? In order to dominate, having the ability to monitor, measure and improve your operations becomes critical. Software is the answer to improved efficiencies provided it works to get you to your goals and the way you do and for you! In the rapidly changing market, I offer you eight steps for Independent Dealers to Update Software Providers. Uncovering these eight answers will be the key to unlocking the secret truths of short and long term success in an ever changing technological landscape.

1-     Start with the outcome in mind. Most software today is filled with shiny objects and promises of efficiency. “Your problems will be solved just by buying this product!” Yeah. Right. Well, it can be true, IF, you know specifically what problem you are trying to solve. Starting with the desired outcome in mind will help you make a better and less emotional decision.

2-     Prioritize Time over Price. Our one diminishing asset is time. It’s precious. Courses, books and software designed to save time command top dollar. Why? Because there’re so many things you can do with your time; reinvest it in your business, share it with loved ones, reflect.  You choose. The problem is that sometimes we become too budget sensitive and settle for a software solution that actually takes more time than it gives! Slightly higher price points can be worth it if you’re getting the outcome you’re seeking.

3-     Review Current Process for Potential Improvement. Assess improvements that can be made in your current processes. Who will benefit? What tweaks can be made to improve your current business model? Where can the changes occur? When can they be implemented? How will the changes help you reach your goals? Avoid the belief that just because you decide to change a provider that everything will just magically fall into place. Change takes commitment from the end users and commitment from you at the top to make sure that your investment is being maximized.

4-     Do your homework. With so many options in the software space, there’re always options to your current provider or to the salesperson now sitting in your office. Make sure that you understand the software, the company; who developed it, the purpose, who are the successful users and how are they using it? What do the reviews say? Do you have friends in the industry using it? What are their experiences? Ask questions!

5-     Get Buy In From Department Heads. If you don’t have the support of the end users in your dealership, then you’re setting yourself up for pain. The most promising software can and will be derailed by internal factors if you don’t have the support and buy in from your department heads. This is an easy, and a critical step!

6-     Awards? Is the provider that you’re looking at innovative? What awards have they won or been nominated for? Innovative providers are recognized by a variety of sources; organizations, publications or associations for their solutions. Some of these awards are political, some are given for financial participation to the awarding organization, while the relevant awards are given to those that are deserving. What if any of these categories has your provider been recognized in?

7-     Have an Implementation Action and Training Plan. Before you make any changes to your software, understand how your dealership’s personnel will be trained, who needs the training and how long will the process take? 

8-     Decide! Once you understand the features, benefits, advantages, ease of use, training plan and how the new solution will help you achieve your goals, decide! Make sure that you understand timing of delivery, implementation and training for the cut over. Knowing that you’ve found the help you need to reach your goals and not acting upon it only sets you up for prolonged pain! Decide what you want and when you find the solution make the decision to act!

Finding a software provider that will help your specific needs and streamline your operation is an exciting proposition for your dealership! Having your software work for you rather than you working for it is a nice change and will help propel your success to the next level! Driving additional sales, profits and giving you the advantage in a competitive marketplace is the difference between long, hard struggles and financial independence. Using the eight secret truths will be your competitive advantage!